In the marshall islands, officially the Republic of the marshall islands, are a group of islands, and, since 1986, is an independent state in the Pacific Ocean. Prime Minister, David Paul, has been officially announced that the country’s own sovereign currency, in the form of digital spend, making use of the blockchain technology.
He said this during the Invest: Asia-2019 at the latest, a meeting of the Asian cryptomarkten and global investors.
Cryptocurrency in addition to the US dollar
Since the Republic of the marshall islands have the status of an independent and democratic nation, has the country’s U.s. dollar as their official currency, for the payment of all types of payments, and taxes, debt, and entitlements.
Until last year, the government, together with a Sovereign Currency, Act as a new currency, the Marshallese sovereign (SOV). It is the intention of the SOV in addition to the U.s. dollar used to be.
What are the benefits?
But why a private currency? In the islands, wanted to necessarily have to be a cryptocurrency at their own blockchain. They want to make use of a decentralized network, which is faster, easier, cheaper, and more secure.
In addition, they want to make their own markets ‘ protection. At the present time, the marshall islands is fully dependent on a traditional, non fiatvaluta: is the united states dollar. The country will judge them in this way, but are more vulnerable to turmoil in international finance. In addition, to send and receive citizens and foreign operations. The various overmakingsdiensten have to pay a fee of up to ten percent of the time. And then there’s also a practical advantage: it is almost impossible to get at any of the thousands of islands of atm machines and to install it.
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Blockchain as the basis for
A blockchain-based currency, paving the way for a simpler system, in spite of all the mathematical and technical complexities that will be required. In a decentralized system, there is no need of a central bank, printing and processing of paper-based money, control, and all you need is a working network.
It is crucial to ensure that the privacy of individual users is guaranteed. They should be able to choose when to disclose, what they share and with whom.
The idea is that there will be a pre-determined stock of coins to be issued. The annual growth rate has been fixed at four per cent.
We have chosen to go with a fixed money supply with a fixed growth rate to create because of the fiat currencies, are remarkably unstable, it could have been. It is the policy of the major central banks, it is not very reassuring, such as gold and bitcoin prices to to confirm. We, as governments, have a longer-term approach to cash-handling, and it is not an unlimited source of value.
Encryption is the same for all citizens
In addition, the prime minister, the fact that the SOV is much more secure in comparison to the fiat currency. It makes it easier to enforce the law and to the financing of terrorism and anti-money laundering.
And it appears that this rule does not work. There may be massive as well to the other algorithms. Moreover, anyone who is eligible for a SOV the currency is automatic. There will also be a kind of airdrop can take place. Ten per cent of the primary stock will be distributed to all the inhabitants of the marshall islands.
This is a test on a relatively small scale, but it’s a good use-case for the rest of the world.